7 Signs You May Need a Financial Advisor

From tackling your debt to planning for retirement, managing your personal finances on your own can be difficult. As one of Perpay’s main tenets of financial wellness, guidance is crucial when it comes to making smart financial decisions. But how do you know if you’re getting the right advice? Today, we’re breaking down if and when you should seek the help of a finance professional.

A common misconception is financial advisors are only for the wealthy or for those in severe financial distress. However, the reality is financial coaching can help with a number of life circumstances and events!

If any of the following statements are true about your financial situation, you might benefit from the guidance of a financial advisor.

1. You’re not sure if you’re saving enough money.

If you find yourself constantly feeling confused or concerned about whether you’re saving enough money or if you simply struggle with saving in general, a money coach might offer you the help you need! Having a realistic idea of how much you should be saving and a strategy in place to get there will allow you to make confident financial decisions in your everyday life.

2. You haven’t set up a survivor or legacy plan.

It’s important to consider how your finances will be handled in the event you are unable to manage them yourself. Apart from creating a will with a lawyer, hiring a financial planner to assist you with asset and legacy planning can be extremely helpful when preparing for old age, illness, or death.

3. You always receive a tax refund.

If you’re receiving a tax refund every year, it means that you've been overpaying your taxes. When you receive money rather than owe money to the government, it might mean you are not sufficiently prepared for the future. Rather than waiting until tax season to discover this, a financial advisor can work with you throughout the year to help clarify what you owe and explain how much you should be paying so you can make educated decisions.

4. You don’t know how much you’re paying for your investments.

Most investments are associated with hidden fees, such as management fees, administrative expenses, and front and back end fees. It’s important to understand how much you’re paying in fees for investments, since you could be giving up a large portion of your return. Because many people are unaware they’re paying investment fees, financial advisors are very skilled when it comes to analyzing and explaining them.

5. Your family is growing or changing.

Whether you’re recently married, having a child, or going through a divorce, there’s no doubt a major family change will affect you monetarily. A financial advisor can help you with combining income, separating funds, preparing for your child’s future, and planning for emergencies that could affect not just you, but your entire family.

6. You want to make a big investment.

A large investment, like buying your first home, is something that requires smart planning and budgeting. When doing so, it’s important to understand how this investment will affect your current income, expenses, and savings plan. Make sure your bases are covered by talking to someone who has professional experience dealing with large investments. Not only will it give you peace of mind going into the investment, but it can ensure you don’t end up in financial trouble down the road.

7. You are in financial trouble.

Financial trouble can bring about serious emotional distress. When dealing with financial stress, decision-making can be extremely difficult. Whether you’re experiencing a family emergency, dealing with a medical crisis, or are simply just overwhelmed with debt, a professional can offer you the sound advice and unbiased opinion you may need.

We understand making the decision to hire a financial professional isn’t an easy one. Paying someone to help manage your money can feel counter-productive. However, like most investments, it can greatly pay off in the long-term. There are countless scenarios in life that can benefit from the opinion of a professional. Managing your money is no different!

If you are considering hiring a financial advisor for any of the above reasons, make sure to understand your options. Find out who to hire, how to find them, and what to ask here.